States Where the Rich Get Richer and the Poor Get Poorer

It’s impossible to deny the fact that in some parts of the world, the rich get richer while the poor get poorer. And the same is true for the United States, which is why you hear terms like “wealth gap” and “wealth inequality” get thrown around often these days.

To paint a picture of the wealth gap in America, GOBankingRates identified 15 states where the rich are increasing their wealth the most — as well as 15 where the lower classes have experienced declining incomes — using data Economic Policy Institute published in a 2016 report. The EPI report includes the average income growth, as well as the average income amounts, among the top 1 percent and bottom 99 percent of earners in every state.

Top 15 States Where the Rich Are Getting Richer

The 15 states that made this list vary widely in terms of geography, politics and economics. But they all share the fundamental fact that the richest residents are increasing their wealth and income at alarming rates.

15. Oregon

Average income growth of the top 1%: 16.1%

Average income of the top 1%: $754,431

From 1990 to 2000, almost every group of workers in Oregon — from the lowest wage-earning percentile to the highest percentile — experienced real increases in their wages, according to the Oregon Employment Department’s Workforce and Economic Research Division. In that decade, wages grew faster than the rate of inflation.

From 2000 to 2013, however, things changed. Most lower- and median-income workers saw their wages fall behind the pace of inflation. Meanwhile, the top 1 percent of earners experienced a dramatic increase in their slice of total wages in Oregon, doubling over the last 20 years.

14. Minnesota

Average income growth of the top 1%: 16.9%

Average income of the top 1%: $1,035,928

Minnesota’s top 1 percent is doing well. However, the state’s top 0.1 percent is seeing exponential increases in their share of income and wealth distribution, according to the North Star Policy Institute, a non-profit think tank that conducts original research.

It’s likely the members of the top 1 percent (or 0.1 percent) live in more affluent parts of the state. For example, the most expensive zip code in Minnesota is 55424 and covers the affluent Minneapolis suburb of Edina. The median home value in the zip code is over $700,000, which is much higher than the state’s overall median home value of approximately $200,000.

13. Connecticut

Average income growth of the top 1%: 17.2%

Average income of the top 1%: $2,402,339

Connecticut is one of three states whose elite 1 percent earns an average income of more than $2 million. The state features one of the highest costs of living in the U.S., with housing expenses that cost almost 60 percent more than the national average, a separate GOBankingRates study found.

Connecticut’s wealth gap is especially noticeable when comparing the suburb of Greenwich to nearby Bridgeport, which are both in the same county of Fairfield. Greenwich boasts a median household income of roughly $130,000, according to the Census Bureau. In Bridgeport, the median household income is less than $42,000.

12. Ohio

Average income growth of the top 1%: 17.3%

Average income of the top 1%: $752,582

In Ohio, you might find some of the wealthiest one-percenters outside the city of Columbus. According to HomeSnacks, an online resource with information about residences in the U.S., the top three richest cities in Ohio are Powell, Dublin and Worthington. Like many major U.S. cities, however, Columbus’ surrounding metro area displays jarring contrasts between wealthy suburbanites and people living in the urban sprawl.

Franklin County, where Columbus is located, seemingly recovered from the Great Recession as unemployment dropped, reported the Columbus Dispatch. However, “the share of residents officially poor or nearly so — a population that surged during the recession — has stayed roughly the same.”

11. Colorado

Average income growth of the top 1%: 17.6%

Average income of the top 1%: $1,101,214

The rich know how to stay rich in Colorado. The state’s top 1 percent of earners increased their income by almost 18 percent in recent years. But in the post-1980 economic expansion, the 1 percent really took off. Before, they accounted for 6.4 percent of total income growth. After 1980, this figure skyrocketed, so that the 1 percent was capturing nearly a 60 percent share of the total income growth.

10. Kansas

Average income growth of the top 1%: 19.6%

Average income of the top 1%: $981,279

The average income of the top 1 percent of earners in Kansas is about 19 times higher than the state’s overall median household income of $52,205. Meanwhile, the remaining 99 percent have watched their share of total income growth drop substantially since 1980. The 99 percent once accounted for nearly 90 percent of total income growth before 1980; afterward, it fell to under 56 percent.

9. New York

Average income growth of the top 1%: 20.6%

Average income of the top 1%: $2,006,632

New York is not only one of the richest states in the U.S., but it’s also one of three states in the EPI report where the average income of the top 1 percent is over $2 million. What really illustrates New York’s uneven wealth distribution, however, is the explosion in the earnings of the 1 percent in the post-1980 economic expansions.

Before the expansions, the share of total income growth that top earners accounted was -6.4 percent, while the 99 percent’s share of total growth was more than 100 percent. But, the top 1 percent’s share of total income growth ballooned to almost 95 percent during the post-1980 expansions, while the bottom 99 percent’s total share fell to less than 6 percent.

8. Washington

Average income growth of top the 1%: 21.6%

Average income of top the 1%: $1,100,186

When comparing wealth inequality by state, Washington’s top 1 percent stands out for its complete dominance. From 2009 to 2013, Washington’s elite earners saw their income grow while the bottom 99 percent experienced a decline in average income.

A high cost of living in some Washington cities doesn’t help the uneven wealth distribution. For example, it’s difficult to live comfortably in Seattle — you need to make more than $75,000. However, the median household income is only about $70,600. Outside Seattle, you’ll likely find the 1 percent in suburbs like Sammamish, which was named the richest city in the state by HomeSnacks. Nearly 30 percent of the town’s population earns over $200,000, according to data on Sperling’s Best Places website.

7. Nevada

Average income growth of the top 1%: 25.6%

Average income of the top 1%: $1,386,448

Wealth inequality in Nevada is glaring, considering the state made both the list of states where the rich get richer, and where the poor get poorer. Despite the collapse of the housing bubble, Nevada’s wealthy have managed to increase their incomes by over 25 percent from 2009 to 2013. They also account for nearly 28 percent of Nevada’s total income.

6. Michigan

Average income growth of the top 1%: 26.3%

Average income of the top 1%: $834,008

Michigan is a prime example of how long wealth inequality in the U.S.has been growing. Between 1979 and 2007, only the 1 percent saw a rise in incomes, according to EPI. These days, the top 1 percent in Michigan makes more than 20 times the amount the bottom 99 percent makes. And, you need to make at least $306,740 to become a member of the wealthy elite.

5. Texas

Average income growth among the top 1%: 26.4%

Average income of the top 1%: $1,301,618

The top 1 percent take home more than a fifth of the total income in Texas. When it comes to the wealth gap, Midland is the most unequal metropolitan area, according to the EPI. The average income of the elite 1 percent is more than $3.3 million and 44 times the amount made by the bottom 99 percent.

4. California

Average income growth of the top 1%: 28.1%

Average income of the top 1%: $1,411,375

It might not come as much of a surprise that California — in particular, the Bay Area — sees some major wealth inequality. According to the EPI, San Jose-Sunnyvale-Santa Clara is the most unequal metro area in California. The 1 percent earns 32 times as much as the bottom 99 percent.

The top 1 percent takes home almost a quarter of the state’s income, and the top 1 percent has been earning record amounts of money — especially since the 1990s onward. To gain access to the top 1 percent’s exclusive club in Massachusetts, you’ll need to earn about $540,000 annually.

2. Wyoming

Average income growth of the top 1%: 55.1%

Average income of the top 1%: $2,118,167

Income inequality is markedly bad in Wyoming, with almost 29 percent of the state’s total income going to the top 1 percent of income earners. Plus, Wyoming is one of just three states in which the average income of the top 1 percent exceeds $2 million, the others being Connecticut and New York.

Wyoming’s wealth distribution is highly skewed by the influx of rich people to the state. In recent years, many of America’s super-rich have been making ski resort locations — such as Jackson Hole — their new place of residence, reports the Washington Post. According to the EPI, the top 1 percent in the Jackson metro area make 213 times more than the bottom 99 percent. Even more alarming: The average income of the top 1 percent in this area is just shy of $20 million.

1. North Dakota

Average income growth of the top 1%: 61.7%

Average income of the top 1%: $1,282,551

According to the EPI, Williston is the most unequal metro area in North Dakota in terms of wealth distribution. More than a fifth of the Williston population earns between $100,000 and $150,000 a year, according to Sperling’s data. And the top 1 percent of income earners rake in almost 28 times the amount the bottom 99 percent makes.

15 States Where the ‘Poor’ Are Getting Poorer

First things first, a little clarification: The bottom 99 percent isn’t exactly the poorest income class in America. The bottom 99 percent actually encompasses a mix of earners at varying income levels — but not the top 1 percent.

Living as a member of the 99 percent in America shouldn’t be seen as a negative thing. However, it’s interesting to see how the income amounts and growth among the top 1 percent differs from the rest of America — especially in these 15 states.

15. Washington

Average income growth of the bottom 99%: -0.8%

Average income of the bottom 99%: $50,372

In addition to ranking No. 8 among the states where the rich are getting richer, Washington made this list as well. Incomes among the bottom 99 percent have declined while the 1 percent saw its real income increase by more than 20 percent.

Washington’s wealth distribution has been on a long trend of shifting toward the top 1 percent. From 1979 to 2007, their average real income increased by 222.3 percent, while that of the bottom 99 percent rose just 14 percent.

14. Delaware

Average income growth of the bottom 99%: -1.1%

Average income of the bottom 99%: $48,371

The average income of the 99 percent in Delaware is roughly $12,000 less than the state’s overall median household income. Yet, Delaware is an interesting case when you look at wealth inequality by state. It is one of the few places where both the top 1 percent and the bottom 99 experienced real declines in their incomes over the same period. Residents experiencing a drop in income might want to use these tips to double their paychecks in one month.

13. New Jersey

Average income growth of the bottom 99%: -1.4%

Average income of the bottom 99%: $57,447

New Jersey is an especially egregious case of wealth inequality in America. The median household income is a healthy $72,093, but the average income of the 99 percent is significantly less. On top of that, the top 1 percent accounts for more than a fifth of all income in New Jersey. And, the average income among the top 1 percent in New Jersey is $1,453,741.

12. Connecticut

Average income growth of the bottom 99%: -1.6%

Average income of the bottom 99% income: $56,445

While Connecticut’s wealthiest 1 percent has increased their incomes by double digits, the 99 percent has lost ground. And with expensive costs of living and mediocre banking yields, Connecticut ranked as one of the the worst states for your money in a separate GOBankingRates study.

11. Missouri

Average income growth of the bottom 99%: -1.8%

Average income of the bottom 99%: $41,641

The average income of the bottom 99 percent is almost $7,000 less than the median household income in Missouri ($48,173) — and about 20 times lower than the average income of the top 1 percent ($833,823). The most “unequal” metro area in the state is Springfield, where the average income of the bottom 99 percent is around $35,000, according to the EPI report.

10. Wyoming

Average income growth of the bottom 99%: -2.3%

Average income of the bottom 99%: $52,196

In Wyoming, the wealthiest 1 percent grew their incomes by more than 50 percent. Meanwhile, the income among the 99 percent declined. The wealth gap in Wyoming wasn’t always so wide, however. But in recent years, it has gotten so bad that Jackson has become the most unequal metro area in the country — and Teton County has become the most unequal county, according to the EPI.

9. Louisiana

Average income growth of the bottom 99%: -2.4%

Average income of the bottom 99%: $41,600

Louisiana’s median household income ($45,047) is only a little higher than the average income of the 99 percent. Fortunately, for the bottom 99 percent of earners, Louisiana’s cost of living is almost 6 percent cheaper than the overall U.S. cost of living, with housing providing significant savings, GOBankingRates found.

8. Hawaii

Average income growth of the bottom 99%: -2.7%

Average income of the bottom 99%: $51,033

Hawaii ranks No. 1 for the state with the highest cost of living in the country. Interestingly, the share of income that the top 1 percent accounts for was much higher in the past. In the early 1900s, the top 1 percent grabbed as much as a quarter of all income in the state, whereas today it’s dropped to about 12 percent.

7. Georgia

Average income growth of the bottom 99%: -2.7%

Average income of the bottom 99%: $40,095

The top 1 percent in Georgia makes around 21 times more than the bottom 99 percent. The metro area with the most unequal wealth distribution is Douglas, according to the EPI, with the top 1 percent bringing home almost 25 times more than the 99 percent.

6. New York

Average income growth of the bottom 99%: -3.9%

Average income of the bottom 99%: $44,163

New York isn’t just one of the states where you’re most likely to live paycheck to paycheck, but it also has some troubling statistics when it comes to wealth inequality. According to the EPI, the elite 1 percent earn close to 50 times the amount the bottom 99 percent earn. On top of that, the top 1 percent account for almost a full third of New York’s income.

5. Maryland

Average income growth of the bottom 99%: -4.3%

Average income of the bottom 99%: $60,172

The wealth distribution in Maryland is uneven, but the most unequal metro area is Easton. In Easton, the bottom 99 percent earn an average of around $54,000 a year, compared to an average of $1.5 million earned by the top 1 percent.

4. Florida

Average income growth of the bottom 99%: -4.3%

Average income of the bottom 99%: $36,530

If you’re comparing wealth inequality by state, then Florida stands out for the wrong reasons. In the Naples-Immokalee-Marco Island metro area, the highest earners make over 73 times more a year than the bottom 99 percent: an average of $4.2 million for the 1 percent versus roughly $57,000 for the rest.

3. Mississippi

Average income growth of the bottom 99%: -4.6%

Average income of the bottom 99%: $33,383

On average, Mississippi residents have some of the the lowest incomes in the U.S. The median household income in this state is under $40,000, which is more than $10,000 less than the country’s overall median household income. Average incomes are even lower among the 99 percent — especially in the Clarksdale metro area. The average income of the bottom 99 percent in this area is only $23,815.

2. Virginia

Average income growth of the bottom 99%: -5.7%

Average income of the bottom 99%: $55,743

Based on current trends, the future does not look promising for Virginia’s bottom 99 percent. They’ve seen their average income decline, while the 1 percent’s income soared so much that it accounted for all income growth in Virginia from 2009 to 2013. The average Virginian needs to earn over $400,000 annually to crack the top 1 percent of income, according to the EPI.

1. Nevada

Average income growth of the bottom 99%: -13.3%

Average income of the bottom 99%: $36,169

The average income of the bottom 99 percent is almost $16,000 less than the state’s median household income of $51,847. For a glimpse of the 99 percent in Nevada, look at Reno. According to Sperling’s, 15 percent of the population earns less than $15,000 a year. The second-highest percentage (12.4 percent of the population) earns between $25,000 and $35,000 a year.

Figures on the average income growth and average income amounts were sourced from a 2016 Economic Policy Institute report. To determine wealth inequality by state, GOBankingRates specifically looked at the EPI’s data on the average income growth of the top 1 percent of earners and the bottom 99 percent from 2009 to 2013, as well as the average income amounts in 2013 among the top 1 percent of earners and the bottom 99 percent.

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